Attachment, ADC 1031, Page 1 

Attachment to ADC 1031 

Foreign Military Sales (FMS) Repair Value 

1. ORIGINATING SERVICE/AGENCY AND POC INFORMATION: 

a. Defense Security Cooperation Agency (DSCA) , (703) 601-3672 

b. Defense Logistics Agency (DLA) J332, DSN 427-1249, Commercial 703-767-1249 

2. FUNCTIONAL AREA: 

a. Primary/Secondary Functional Area: Export Compliance/Supply 

b. Primary/Secondary Functional Process: FMS Repair/Return and Repair/Replace 

Program/Distribution 

3. REFERENCES:

a. Title 22, Code of Federal Regulations, Parts 123.4(a)(5) and 126.6 

b. Defense Security Cooperation Agency Memo of March 27, 2012, Subject: Repair Costs 

on Invoice/Shipping Documentation for Repaired Foreign Military Sales (FMS) Materiel, DSCA 

Policy 12-17 (See Enclosure 1) 

c. GAO Report 03-599, subject: Foreign Military Sales: Actions Needed to Provide Better 

Controls over Exported Defense Articles, June 5, 2003 

d. GAO Report 09-454, subject: Foreign Military Sales Program Needs Better Controls for 

Exported Items and Information for Oversight,” May 20, 2009 

4. APPROVED CHANGE(S): 

a. Brief Overview: This change requires shipping activities preparing the DD 1348-1A, 

Issue Release/Receipt Document (IRRD) or DD Form 1348-2, Issue Release/Receipt Document 

with Address Label, to print the repair service value on the shipment document for FMS 

shipments associated with a “repair and return” or “return and replace” program. To facilitate 

this requirement for materiel stored in a DLA Distribution Depot or other storage activity, the 

repair service value is added to the DLMS materiel release order (MRO) transaction so it will be 

available at the time the shipment document is printed. In addition to display on the IRRD, the 

repair value will be incorporated in the 2D bar code on the IRRD. For enhanced visibility of the 

repair value by the FMS customer, the supply status transaction is also updated. 

b. Background: 

(1) U.S. Customs and Border Protection (CBP) informed DSCA that repair and 

return/repair and replace invoices/shipping documentation, provided by the DOD repair facility 

often reflects the materiel acquisition value and not the repair (service) value (charge). This 

absence of the repair cost on the DOD shipment document is exhausting the exportable value on 

the export records maintained by CBP for each FMS case. 
 Attachment, ADC 1031, Page 2 

(2) In addition to the invoice/shipping document citing the repair cost, electronic 

filing (Electronic Export Information (EEI)) using the Automated Export System (AES) is 

required to comply with International Traffic in Arms Regulations (ITAR) section 123.4. This 

ITAR section covers the export of FMS-origin materiel returned to the U.S. for repair. In order 

to correctly file the EEI transaction in AES, an accurate repair cost from the DOD is needed. 

(3) CBP uses the DOD documentation attached to the repaired materiel headed back 

to the FMS customer to maintain CBP-internal records decrementing the value of each export 

made against a FMS case. When the acquisition value is the only value provided on the DOD 

release document, CBP records decrement that value and not the (lower) repair value. This 

noncompliance caused diligent CBP personnel to halt further exports to a major U.S. ally due to 

the FMS case value being exhausted. Significant resources of the DOD, CBP and the FMS 

customer are required to fix the records so further exports can be allowed. 

c. Approved Change in Detail: Substantive changes subsequent to staffing are 

incorporated to add the repair service value to the IRRD 2D bar code , add Navy applicability, 

and to discuss a deviation when the actual repair service cost varies among items in a shipment. 

Refer to comment resolution at Enclosure 6. 

 

(1) This guidance is applicable to items shipped to FMS purchases under a repair and 

return or a repair and replace program. The following information regarding applicability is 

provided, but is not intended to be all inclusive. 

(a) Air Force shipments are identified by the Repair and Return/Replace 

Delivery Term Code (DTC) 1 A, B, C, E, F, G, H, J or for Repair and Replace transactions citing 

Service/Agency Code D and MILSTRIP document number embedded code/Utilization Code H 

(first position of the document number serial number). 

(b) Navy repair and replace requisitions are identified by a Service/ 

Agency Code P in the first position of the MILSTRIP document number and Project Code Z8A. 

For repair and return, Navy requisitions are identified by a Service/Agency Code P in the first 

pos. of the MILSTRIP document number and Delivery Term Codes A, B, C, E, F, G, H or J. 

(2) When a repaired item is shipped by the repair facility directly to the FMS 

customer or freight forwarder, the repair facility is responsible for displaying the repair service 

value on shipping documentation. 

(3) When the item is stored in a DLA distribution depot, the activity responsible for 

directing shipment and preparation of the DLMS 940R MRO is responsible for determining the 

value of the repair service (estimated or actual, in accordance with program procedures) and 

including the repair service value in the MRO. The DLA Distribution Standard System (DSS) 

will recognize the inclusion of the repair service cost and perpetuate the value to the IRRD. 

(4) When shipment is directed by the Air Force, the Air Force unique release order 

formatted transaction (comparable to MILSTRIP A5E (MRO with exception data) provided 

directly to DSS located at an Air Logistics Complex (ALC) (via a near real time interface) will 

 

1

 The DTC indicates how far, from the source of supply to the final destination, that the DoD is responsible to 

transport a shipment. Code explanations available at 

www.dla.mil/j-6/dlmso/eApplications/LOG.NET/UIL/Log_Qualifiers/lqvqcDetails.aspx?code=A3 
 Attachment, ADC 1031, Page 3 

include the repair service value in trailer data for perpetuation to the shipping document. For 

non-ALC locations, offline communications will be required to convey the repair cost 

information to the depot for inclusion on the IRRD. 

(5) The shipping activity will encode the repair value in the 2-dimentional (2-D) bar 

code on the IRRD. 

(6) When supply status (DLMS 870S/DIC AE_) is provided in association with a 

repair/return or repair/replace program, the repair service value will be provided in place of the 

unit cost for the NSN (MILSTRIP legacy rp 74-80). Where the actual repair service cost is not 

available, the average repair value may to be provided. A new DLMS qualifier is provided for 

the repair service value as a DLMS enhancement. 

(7) By exemption, when actual repair service value is employed and that value differs 

among multiple items shipped under the same document number, off-line procedures may be 

used to communicate the repair costs and manually update the IRRD. 

d. DLMS Supplement Revisions: Revise the DLMS 870S and 940R as follows:

# Location DLMS 870S 

Supply Status Revision

Rea

son

1. DLMS 

Introductory 

Notes 

Add ADC 1031to DLMS Introductory Note 7:

- ADC 1031, Foreign Military Sales (FMS) Repair Value 

Identifies DLMS

Changes included in

the DLMS 

Supplement. 

 2. 2/PO104-05/150 Add new Qualifier QT and associated DLMS notes:

Unit Price 

Basis of Unit Price Code 

Federal Note: Use to identify the correct unit price associated with 

the status provided.

DLMS Note: 

1. A field size exceeding 7 positions (5 digits dollars and 2 digits 

cents) may not be received or understood by the recipient’s automated 

processing system. 

2. DLMS transactions authorize an expanded unit price field size of 9 

digits for dollars and 2 digits for cents. The decimal point is passed in 

the transaction. If conversion to MILS legacy format is required, unit 

prices exceeding the legacy field size constraint will not be 

perpetuated. Authorized DLMS migration enhancement; see 

introductory DLMS 3f. Refer to ADC 221A. 

QT Quoted 

DLMS Note: 

1. Use to provide the estimated or actual unit cost for the repair 

service provided for FMS items repaired/replaced under a 

repair/return or repair/replace program. Authorized DLMS 

enhancement. See ADC 1031. 

2. The Repair Service Value is structured as 9 digits for dollars and 

2 digits for cents. The decimal point is passed in the transaction. 

The value for the 

unit prices is 

defined by a 

separate qualifier 

indicated the 

basis/type of unit 

price identified. 

The choice of codes 

for this data element

is limited and does 

not include a price 

associated with 

repair so a generic 

code will be used. 
 Attachment, ADC 1031, Page 4 

# Location DLMS 940R 

Materiel Release Revision

Reason

1. DLMS 

Introductory 

Notes 

Add ADC 473 to DLMS Introductory Note 7:

- ADC 1031, Foreign Military Sales (FMS) Repair Value 

Identifies DLMS

Changes included in the 

DLMS Supplement. 

2. 2/AMT01/0800

Add new Qualifier and associated DLMS Note:

RP Repair

DLMS Note: 

1. Use to provide the estimated or actual unit cost for 

the repair service provided for FMS items repaired/ 

replaced under a repair/return or repair/replace 

program. Authorized DLMS enhancement. See ADC 

1031. 

2. The Repair Service Value is structured as 9 digits for 

dollars and 2 digits for cents. The decimal point is 

passed in the transaction. 

Allows the activity 

directing the release 

of materiel to provide 

the repair cost to the 

storage activity so 

that it can be 

perpetuated to the 

shipping 

documentation. 

There is no identified 

requirement to 

distinguish estimated 

from actual value. 

e. Revisions to DLM 4000.25 Manuals: 

(1) Update DLM 4000.25, DLMS, Volume 2, Chapter 4, for Security Assistance 

procedures associated with this change. Refer to Enclosure 2. 

(2) Update DLM 4000.25-1, MILSTRIP, Appendix 1.1, Forms/Message Formats 

(Introduction), to prescribe printing in Block 27. Refer to Enclosure 3. 

(3) Update MILSTRIP Appendix AP1.35, Issue Release/Receipt Document (IRRD) 

(1348-1A) With Three of Nine Bar Coding and PDF417 Two-Dimensional (2D) Bar Code, to 

insert the repair value in the 2D bar code. Refer to Enclosure 4. 

(4) Update DLM 4000.25-1, MILSTRIP, Appendix 3.48, Materiel Release Document 

DD Form 1348-1A or DD Form 1348-2 to prescribe printing in Block 27. Refer to Enclosure 5. 

f. Transaction Flow: There are no changes to the existing transaction flows.

g. Alternatives: None identified. 

5. REASON FOR CHANGE: The DOD needs to provide the repair cost for repaired FMS 

materiel in order for the repaired materiel to be reported correctly in the AES system and 

correctly decremented in CBP databases. Compliance with the FMS requirements in the ITAR is 

mandatory. Frustrated repaired FMS materiel impacts program execution and sustainment of 

FMS-purchased or provided materiel, not to mention the expenditure of DOD, CBP and FMS 
 Attachment, ADC 1031, Page 5 

customer resources to constantly reconcile the records so further defense items can be exported 

against the FMS case. 

6. ADVANTAGES AND DISADVANTAGES: 

a. Advantages: Comply with Code of Federal Regulations (CFR) (ITAR). Reduce 

program execution impact due to DOD documentation discrepancies. Reduce DOD resources 

required to constantly reconcile FMS case financial records on cases including repair services. 

Failure to support the required change will encourage CBP to stop any further shipments when 

the exportable value is exhausted on an FMS case until DOD makes the required system fix(es). 

b. Disadvantages: None identified. 

7. ASSUMPTIONS USED OR WILL BE USED IN THE CHANGE OR NEW 

DEVELOPMENT: None. 

8. ADDITIONAL COMMENTS TO CONSIDER: In 2003, the Government Accountability 

Office released a report, 03-599, that recommended the Department of Defense refine processes 

to verify export information and ensure that only the correct value of defense articles exported on 

FMS cases. A follow-up report in 2009, 09-454, reiterated the need for better controls for 

exported items and information for oversight. This DLMS change will correct one of the 

longstanding GAO findings. 

9. ADDITIONAL FUNCTIONAL REQUIREMENTS: The repair cost must be perpetuated 

to Defense Finance and Accounting Office (DFAS) for preparation of the FMS billing statement. 

10. ESTIMATED TIME LINE/IMPLEMENTATION TARGET: This is a regulatory 

requirement and implementation should be expedited. Supply PRC representatives are required 

to actively monitor for implementation of this ADC and provide implementation dates when they 

become available. Prioritization should be given to communicating the repair service cost in the 

MRO and display on the IRRD; inclusion of the repair cost in the 2D bar code and supply status 

may follow at a later date. 

11. ESTIMATED SAVINGS/COST AVOIDANCE ASSOCIATED WITH 

IMPLEMENTATION OF THIS CHANGE: 

a. Approximately 30,000 FMS repair transactions come from the Service per fiscal year. 

b. USG cost savings would be realized by the Services, DSCA (part of OSD Policy), 

Customs and Border Protection (CBP) Headquarters and CBP offices at export locations. 

Additional savings would be realized by the FMS Purchaser’s Freight Forwarder. The ultimate 

impact is the improved sustainment capability of FMS materiel, the result of increased shipment 

times for repaired. 

c. The cost impact to be eliminated is the manpower cost by the Services, OSD Policy, CBP 

HQ and CBP ports to reconcile the CBP export records so further exports from a FMS case are 

authorized by CBP. 

12. IMPACT: 

a. New DLMS Data Elements: A new DLMS data element is established for Repair 

Service Value structured as a maximum of 9 digits for dollars and 2 digits for cents. The repair 
 Attachment, ADC 1031, Page 6 

service value is defined as the estimated or actual unit cost for the repair/replacement service 

provided for an FMS item returned under a repair or repair and return program. 

b. Changes to DLMS Data Elements: None. 

c. Automated Information Systems (AIS): 

(1) Distribution Standard System: Recognize inclusion of the repair cost in the 

DLMS 940R or Air Force-unique A5E user defined file from direct interface. Apply the repair 

cost with applicable identifying statement to the IRRD and incorporate in the 2D bar code. 

(2) Air Force Legacy System: Develop procedures/internal interfaces to capture the 

repair cost and incorporate in outgoing release order format and supply status. 

(3) DLMS Compliant Service Systems: Develop internal procedures/interfaces to 

capture the repair cost and incorporate in outgoing DLMS 940R and DLMS 870S. 

d. DLA Transaction Services: Map updates to recognize the new data element. 

e. Non-DLA Logistics Management Standards Publications: 

(1) Possible update to DTR 4500.9-R Defense Transportation Regulation, Part II 

Cargo Movement, Appendix E, Foreign Military Sales. 

(2) Requires update to DOD 5105.38-M, Security Assistance Management Manual, 

Chapter 7 Transportation. 

(3) Training and guidance, as applicable. 

 
Enclosure 1, ADC 1031, Page 1 

Enclosure 1 

 
Enclosure 2, ADC 1031, Page 1 

Enclosure 2, DLMS/MILSTRIP Manual Revision 

Insert new section shown in DLM 4000.25 DLMS providing a repair and repair/replace program 

overview and specific guidance under this ADC. Paragraph numbering to be assigned for formal 

publication. 

Comparable guidance will be incorporated in DLM 4000.25-1, MILSTRIP, Chapter 6, Security 

Assistance Program, for the legacy supply status requirement as shown below. Changes are identified 

in bold red italics.

C6.24 REPAIR AND REPAIR/REPLACE PROGRAM 

 C6.24.1. General. Purchasing countries can establish FMS cases to get items 

repaired, most commonly at the depot level. Purchasing country repair requirements are 

integrated with the repair programs of the military services and are accomplished by 

organic military repair facilities (i.e., Army maintenance depots, Air Force logistics 

centers, Naval aviation depots, Naval shipyards) or by civilian contractors. There are two 

concepts used in obtaining repairs under the FMS repairable program: 

C6.24.1.1 Repair and Return. The FMS customer must request approval for 

repair through the ILCO from the item/repair manager before shipping materiel to the 

U.S. for repair. After receiving approval and shipping instructions from the item manager 

the purchaser ships the materiel to the designated repair facility where it is entered into 

the repair queue. After repairs are completed, the item is shipped back to the FMS 

customer. In the repair and return or RRR program, the cost to the country is the actual 

cost of the repair in accordance with DoD 7000.14-R, Financial Management Regulation 

(FMR), Volume 15, Chapter 7. 

C6.24.1.2 Repair and Replace. Under the repair and replace program, the 

unserviceable item is returned to the repair activity and, if it can be economically repaired 

or overhauled, a replacement item is issued from the U.S. Military Service’s stocks. The 

country’s unserviceable item is repaired or overhauled and returned to the U.S. military 

service’s stocks. Under this program, countries are charged the estimated average cost of 

repairs (also referred to as net cost or exchange price). 

C6.24.2. Repair Service Value. The repair service value is the cost to repair or 

replace an FMS-origin item returned by an FMS customer. The estimated or actual 

repair unit cost, as appropriate for the type of repair program, will be identified for use in 

specific business processes including status, shipment, and preparation of the subsequent 

billing statement by Defense Finance and Accounting Services (DFAS). If actual cost 

varies among multiple items in a shipment, off-line manual processing may be used to 

communicate the applicable values. 

 

C6.24.2.1. Supply Status. When supply status (DLMS 870S/DIC AE_) is 

provided in association with a repair or repair/replace program, the repair service unit 

cost will be provided in place of the unit cost for the NSN (MILSTRIP legacy rp 74-80). 

 C6.24.2.2. Materiel Release Order (MRO). When the repaired or 

replacement item is located in a DoD storage activity, the activity directing shipment must 

include the repair service unit cost on the release order (DLMS 940R) so that it can be 

perpetuated to the shipment documentation. The Air Logistics Complex has comparable 

ability via direct interface with a shipping Distribution Depot; for non-Air Logistics 

Complex locations, offline communications will be required to convey the repair cost 

information to the depot. 
Enclosure 2, ADC 1031, Page 1 

C6.24.2.3. Shipment Document. The repair facility and/or the storage 

activity will include the estimated or actual repair service unit cost on the shipping 

document. This is required for U.S. Customs export purposes. For DoD storage 

activities, the repair service value will be perpetuated from the MRO and will be properly 

identified on the DD 1348-1A/2 (see MILSTRIP Appendices 1.1, 1.35, and 3.48). 
Enclosure 3, ADC 1031, Page 1 

Enclosure 3, DLM 4000.25-1, MILSTRIP, Appendix 1.1 Revision 

Revise Appendix 1.1, Forms/Message Formats Introduction, as shown. Changes are identified in 

bold red italics.

“AP1.1.6.6.2. The Issue Release/Receipt Document data elements, configuration and locations are 

as follows: 

(Intervening text not shown.) 

BLOCK ELEMENT NAME 

 BLOCK SIZE/ 

 NO. OF CHARACTERS 

BLOCK 

NUMBER 

 (Intervening text not shown.) 

Additional Data

For shipments of GFP, include the 

GFP contract number (and call 

order number when provided). 

This includes shipments from 

DOD to contractors and contractor 

shipment of GFP to DOD 

activities. The contract number 

shall be prefaced by “GFP” to 

clarify the usage. 

 Variable 27

Perpetuate the customer’s internal 

purchase order (PO) number when 

provided on the release order2

.

 PO number value: 10-13 characters

For FMS repair/return and 

repair/replace items, include the 

estimated or actual unit cost of 

the repair service per Appendix 

3.48.3

 ” 

 Repair value: up to 9 digits dollars followed by 

period and 2 digits cents 

 

2

 Refer to ADC 473A

3 Refer to ADC 1031.
Enclosure 4, ADC 1031, Page 1 

Enclosure 4, DLM 4000.25-1, MILSTRIP Appendix AP1.35 Revision 

Revise the MILSTRIP Appendix AP1.35, Issue Release/Receipt Document (IRRD) (1348-1A) 

With Three of Nine Bar Coding and PDF417 Two-Dimensional (2D) Bar Code as shown. Changes 

are identified in bold red italics. 

Compliance 

Indicator 

Separator / Trailer 

Characters 

Format Header 

ANSI MH10.8.2 

Format 06 

Data Identifier (DI)/ 

Category/Description 

or 

Format 07 

 Data Element Identifier (DEI) 

Data Field 

(DoD Usage) 

Data Format 

(Type/Length) 

Sample Data 

(Compliance, 

Header, Identifier

and 

Data Field) 

Total Characters 

G

S

12Q 

Category 17, Measurement: Monetary

Value followed by an ISO 4217 data 

element code for representing unit of value 

of currencies and funds (e.g., 

12Q2.50USD) (2.50 Monetary Value in 

USA Dollars) 

Unit Price 

Configured as 9 digits (whole dollars), 

decimal, and 2 digits (cents) followed by 

“USD” indicating U.S. dollars. Do not include 

leading zeros. 

n..9.n2+an3 12Q50.20USD 19 

G

S

5Q 

Net Amount 

Repair Value 

For repair/return and repair/replace, include 

the estimated or actual unit cost. Configured 

as 9 digits (whole dollars), decimal, and 2 

digits (cents). Do not include leading zeros. 

Do not suffix the value with “USD”. 

n..9.n2 

Value is in U.S. 

dollars. 

5Q1500.00 15 
Enclosure 5, ADC 1031, Page 1 

Enclosure 5, DLM 4000.25-1, MILSTRIP Appendix 3.48 Revision 

Revise Appendix 3.48, Materiel Release Document DD Form 1348-1A OR DD Form 1348-2, to 

insert new paragraph shown providing guidance for identification of the repair service cost. 

Changes are identified in bold red italics.

“FOR FMS SHIPMENTS1”

(Intervening text not shown.) 

“27 This block may contain additional data including bar coding for internal use. This 

block may contain a 2D bar code which contains information for serially tracked 

items and repeats bar coded data content. Data entered in this block is as required by 

shipping activity by commodity. When data is entered in this block, it will be clearly 

identified. See Appendix 1.35 for Code 39 linear bar code and PDF417 2D bar code 

format information. See Appendix 1.36 for the Block 27 continuation page 

requirements. 

 USML Items – This block will contain clear-text information to identify shipments of 

United States Munitions List (USML) items which may require filing of export 

licenses and Shipper Export Declarations (SED) per 22CFR126.4 and 22CFR123.22 

as follows: “USML item—may need SED.” 

For FMS Repair/Return and Repair/Replace Items – Include the estimated or 

actual unit cost for the repair service; perpetuate from the release order when 

provided. This block will contain the following statement: “Unit repair value of 

$XXXXXXXXX.XX is provided for United States Customs export purposes. 2”

 

1 Requirement to add bar-coded Foreign Military Sales data to the Issue Release/Receipt Document last reported as not 

implemented by United States Marine Corp (USMC). Refer to AMCL 8. 

2

 Refer to ADC 1031. 
Enclosure 6, ADC 1031, Page 1 

Enclosure 6, Proposed Change Comment Resolution 

Submitter Response/Comment Resolution 

1. DLA Concur. Impact statement pending from EBS and DSS. 

1. DTR Part V, Chapter 508 already reflects the 

requirement. Transportation Policy (TP) will work with 

USTRANSCOM at the ISTWG to ensure the 

recommendation to add the change to the DTR, Part II, 

Appendix E is executed. This will only have a minimal 

impact to TP. 

2. Clarify the PDC detail contained in para 4.c. that says 

the Air Force will provide the transaction directly to DSS 

"via a near real time Websphere interface." It seems to 

allude to an automation of the MRO, but doesn't mention 

that we would receive a DLMS 940R as it does in para 3 

(does para 3 not apply to Air Force?). Can someone break 

down the processing requirements from the receipt of the 

repaired item to the MRO transaction being transmitted to 

DSS? How does this websphere interface work and will the 

MROs now flow through the system? 

From my limited experience with Air Force FMS repair and 

return it is a very manual process and I don't see why or 

how this PDC will affect any change to that. As far as I 

know, we do not perform normal receipts and MROs on this 

material. My concern is that the Air Force doesn't use the 

standard processes and this PDC is not likely to resolve 

issues with ensuring that the repair cost is on the 1348-1 or 

improve any processing. 

Noted. No known impact on 

EBS. Impact on DSS applicable 

to the processing of materiel 

release orders and printing of the 

IRRD. 

1. Noted. 

2. This change does apply to the 

Air Force but specific rules 

which deviate from the DLMS 

transactional interface are 

required. The Air Logistics 

Complex uses a user defined file 

(UDF) transaction that is 

comparable to an A5E with 

extended data. This interface 

will allow the AF to incorporate 

the repair value in their release 

order without a DLMS interface. 

Non-ALC locations will be 

required to provide the repair 

value via telephone or email. 

There is no impact to receipt 

processing, but MROs will need 

to be modified to contain the 

repair value so that it can be 

captured for display on the DD 

1348-1A and inclusion in the 2D 

bar code. 

2. Army Concur. 

1. If a repair cost is entered the time a controller sends it 

back to PC&H/ Transportation, their Labor as well as 

materials will not be calculated. 

2. Most FMS programs are reimbursable or fixed priced, a 

UFC is provided to the customer prior to the acceptance of 

the program and billed the total cost incurred after all cost 

centers load their labor and materials. This can only be 

done after PC&H/Transportation do their part. 

3. What if it takes a month to input their time/materials, the 

asset will sit here until this has taken place. 

Noted. 

Response provided by DSCA 

Transportation Financial Policy: 

1. If a DTC (for below the line 

transportation) is used then the 

original item value, not the 

repair cost needs to be used to 

calculate the transportation cost 

(in DIFS), if not, then we will 

not be collecting enough and this 

will impact the health of the 

transportation account. If using 

above-the-line to pay for the 
Enclosure 6, ADC 1031, Page 1 

Submitter Response/Comment Resolution 

 transportation we don't see an 

actual cost; I believe only Navy 

uses the above the line for 

Return and Repair. If they are 

using a Freight Forwarder then 

there is no issue as there is no 

cost to us. 

2. The customer is provided an 

estimate prior to the item being 

returned and then billed the total 

cost once it is delivery reported. 

Please more fully explain the 

issue/concern since the customer 

is being billed the total cost once 

it is delivery reported for the 

article. However for 

transportation, if a DTC is used, 

the cost is based on the article 

cost times the DTC percentage. 

3. The item should generally 

ship prior to the delivery being 

reported and the transportation 

charge calculated. 

3. Navy Concur. 

The Navy requests the following corrections be made to this 

PDC: 

1. Paragraph 4.c(1) will need to be altered. It currently 

states, "This guidance is applicable to items shipped to FMS 

purchases under a repair and return or a repair and replace 

program. Applicable shipments are identified by the Repair 

and Return/Replace Delivery Term Code (DTC) A, B, C, E, 

F, G, H, J or for Air Force Repair and Replace transactions 

citing Service/Agency Code D and MILSTRIP document 

number embedded code/Utilization Code H (first position of 

the document number serial number)." 

Please add a statement that shows that Navy repair and 

replace requisitions are identified by a Service/Agency 

Code "P" in the first pos. of the MILSTRIP document 

number (MILSTRIP rp 30) and Project Code (MILSTRIP 

pos. 57-59) of "Z8A". For repair and return, Navy 

requisitions are identified by a Service/Agency Code "P" in 

Noted. 

1. Navy information added. 

2. Navy information added. 

3. Training and updated 

published guidance should 

support implementation to 

achieve better results. The DD 

1149 is not applicable for 

materiel shipped by a DLA 

distribution depot in response to 

a release order. Such a shipment 

this would fall under MILSTRIP 

procedures and requires the use 

of the DD 1348-1A. Any 

comparable changes to the DD 

1149 would not fall under the 

purview of this office. 
Enclosure 6, ADC 1031, Page 1 

Submitter Response/Comment Resolution 

the first pos. of the MILSTRIP document number 

(MILSTRIP rp 30) and Delivery Term Codes A, B, C, E, F, 

G, H or J, as stated. 

2. Additionally, we would like paragraph X.X.1 changed. 

It now says, "Repair and Return. The FMS customer must 

request approval for repair through the ILCO from the item 

manager before shipping materiel to the U.S. for repair." 

This is not correctly stated for Navy. We do not have our 

item manager involved in this process. For Navy "item 

manager" should be replaced with "repair manager". 

3. Naval Surface Warfare Center Crane Division and PMA259E2: 

The proposed fix in Enclosure 6 will make available an 

entry block for the repair value, but I believe everyone will 

continue to look at the Replacement Cost at the top of the 

page, which means they haven't solved the problem 

These auto-generated 1348 issue documents are 

WONDERFUL when items are issued and shipped from 

stock, since the operator only has to enter a limited amount 

of information, then a complete shipping document appears. 

However, for FMS repair returns, they don't work so well, 

depending on the proximity of the freight forwarding 

personnel to Customs and Border Control. If the material 

handler carries the documentation to the Customs folks, the 

correct information may be pointed out and adjustments 

made on the spot. However, if documentation is simply 

sent with the material without human interface, the only 

spot Customs will look is the unit and total price blocks. 

Any other information is "invisible", since looking for 

something different takes time they are unwilling to expend. 

The accompanying barcodes on these machine generated 

documents also contain the incorrect unit price information 

(not the repair price). 

All that being said, I feel these auto-generated documents 

are completely inappropriate for FMS repair returns, since 

the ability to enter the actual unit repair price isn't available. 

Preparation of an 1149 would be far more appropriate, I 

think. Yes, they are more work, but we wouldn't be 

draining the license amounts for our FMS Customers quite 

as fast that way. 

The proposal to put repair pricing and total cost information 
Enclosure 6, ADC 1031, Page 1 

Submitter Response/Comment Resolution 

in the Additional Information Block 27 or Remarks Block 

28 is one way, but I feel it would be simply overlooked by 

Customs, since the incorrect information is right on top of 

the form 

4. Air Force AF concurs with comments. 

1. The gist of the change is that a repair facility must 

provide the actual/estimated repair cost to the shipping 

activity. This cost will be placed on the shipping document. 

The standard unit price/extended cost will remain on the 

shipping document in their normal locations. This is a 

change to both the shipping system (DSS) and the repairing 

system (D035A or D035K). 

At an ALC, D035K will have to be changed to place the 

repair cost in trailer data on the A5X it sends to DSS. DSS 

will have to be changed to accept the new data and to place 

that data onto the shipping document. 

At a non-ALC, D035A will have to be changed to send an 

MILSTRIP AE_ transaction after the shipping document 

has been transmitted. The AE_ transaction will have the 

repair cost in positions 74-80. DSS will have to be changed 

to accept this changed AE transaction, read the repair cost 

in rp 74-80, and place the repair cost on the shipping 

document. 

So this PDC will require CSRDs for D035K, D035A, and 

DSS. All other Services have the same problem and will 

have to follow suit. 

We will need to be notified 24 months prior to 

implementation, so we can program for these changes. 

2. For 2.b, change "FMS Repair and Repair/Replace 

Program/Distribution" to " FMS Repair/Return and 

Repair/Replace Program/Distribution" 

3. For 4.c.(4), change "Air Logistics Center" to "Air 

Logistics Complex" 

4. For 4.c.(5), insert "For Air Force repair/replace, the 

average repair cost is to be provided." prior to "A new 

DLMS...". 

5. Placement of the repair cost within that variable length 

format used between DSS and the AF is not available at this 

Noted. 

1. There was no intent to modify 

the procedures for the AE_ for 

use by DSS. The focus is on 

DLMS-compliant systems and 

the variable length format used 

for the ALCs (assuming that will 

stay in place for an extended 

time). Changing DSS to use an 

incoming AE_ to obtain the 

repair cost would be a significant 

programming change and not 

consistent with our approach to 

make enhancements to 

DLMS/variable length 

transactions vs. legacy. Instead 

of this, we have document the 

requirement for use of off-line 

communication with the depot 

for shipments moving to FMS 

customers from non-ALC 

locations (per Air Force 

concurrence with this approach). 

2. Updated. 

3. Updated. 

4. Updated using a more generic 

statement for applicability to 

other Services. 

5. Noted. 
Enclosure 6, ADC 1031, Page 1 

Submitter Response/Comment Resolution 

time. 

This is a negotiation that will have to take place between the 

DSS Program 

Management Office and the D035K functional office. The 

transaction will be documented in an MOA or Interface 

Control Document. The current interface with DSS on 

these types of transactions is over 800 positions long and is 

documented only in an ICD between DSS and D035K. 

5. Marine 

Corps 

Concur with comment: 

This PDC will require GCSS-MC to make changes to the 

DLA-TS interface, translation layer, and storage fields to 

accommodate this change. In addition, the 1348-lA and 

1348-2 forms developed for the Oracle Warehouse 

Management System module of GCSS-MC will require 

modification. 

Noted. 

6. DSCA Concur Noted. 

7. USTRANS 

COM 

Approved 

The attached PDC states 'This change requires shipping 

activities preparing the DD 1348-1A, Issue Release/Receipt 

Document (IRRD) or DD Form 1348-2, Issue 

Release/Receipt Document with Address Label, to print the 

repair service value on the shipment document for FMS 

shipments associated with a repair and return or return and 

replace program." 

Will the repair service value need to be relayed on the 

manifest (i.e. the 858M)? If so, is a discrete code value 

required in the FA201 to identify this as service repair 

value? 

When DSCA approached us on 

this requirement, they only came 

to us with the requirement to put 

this on the IRRD (1348-1A) so 

that when the customs folks 

pulled the 1348-1A to load the 

costs into AES, they pulled the 

right number. No mention was 

made to us for further 

perpetuation on transportation 

documents/transactions. 

8. MILSTRIP 

Administrator 

1. Reparables are normally shipped as individual items, but 

it is possible to ship a quantity greater than one on a DD 

1348-A for repair/return and repair/replace. Please confirm 

that value we are providing is at the unit level. This will 

work well for an estimated repair cost, but would be 

problematic for if actual repair cost is applicable. 

2. My concern is that it seems possible that the actual price 

per item might differ by item for a shipment quantity greater 

than one. We don't currently have the transaction structure 

set up to contain more than one repair value for a shipment 

or to associate a repair value with a specific UII/serial 

number among all the items in the shipment. 

DSCA Response: 

1. Due to the manner in which 

repair costs are calculated and 

charged, the 1348 value to be 

provided at the unit level will 

work for an estimated as well as 

an actual repair cost, even if the 

quantity is greater than one. 

2. We have adequate confidence 

that in most cases where the 

quantity is greater than one that 

the "same" shipment of the same 
Enclosure 6, ADC 1031, Page 1 

Submitter Response/Comment Resolution 

type item will have the "same" 

price per item, both for 

repair/return or repair/ replace. 

In the rare instances for reasons 

unknown to us where the data is 

different the transaction will be 

kicked out and worked 

manually. 

The fundamental reasons stated 

in the change document continue 

to hold true 

- Use of a catalog price (or other 

acquisition value) on the 1348 is 

not acceptable for FMS 

repair/return and repair/ replace 

transactions. A valid repair cost 

is critical to comply with 

Customs clearance from the U.S. 

and into the FMS customer 

country and to ensure that the 

sustainment materiel flows 

smoothly following release from 

the repair facility. 

MILSTRIP Administrator: 

Updates made to specifically call 

out that the value provided is at 

the unit level and the variation of 

actual cost within a shipment 

will require special handling 

outside these procedures.